I resolved my own problems after spending HOURS in reading other forums and finally found the solution.

It is mentioned in one of the handbook of BC Assistant Installation and Setup Guide,
Important: Do not select "Leave the current file system intact". To successfully install Windows XP, you must select one of the other options.

Be aware that this is not correct. There is another option which you MUST NOT choose, that is the conversion to NTFS. You must not convert. You must format it.

After formatting it, you are now level up! (Feel like I'm playing a game)